Whole Life Guarantees Explained

Understand which whole life policy values are guaranteed and which elements may not be.

The planning principle

Traditional whole life policies typically contain contractual guarantees, while dividends on participating policies are generally not guaranteed. The distinction matters when evaluating projections.

What to review

Read the carrier illustration and policy contract carefully. Compare guaranteed values separately from any non-guaranteed assumptions.

Reference points

• Guaranteed death benefit: depends on satisfying the policy premium and other contractual requirements.
• Guaranteed cash value: the contract specifies minimum values according to its schedule.
• Dividends: participating policies may pay dividends, but dividend scales are not guaranteed.
• Illustrations: evaluate guaranteed and non-guaranteed columns separately rather than treating projected values as promises.

Educational information only. This page is not tax, legal, investment, or individualized insurance advice. Insurance products are subject to eligibility, underwriting, carrier availability, policy terms and state requirements.